Technical Contact: USDL-99-02
EBS Staff (202) 606-6220
Media Contact: FOR RELEASE: 10:00 A.M. EST
Kathyrn Hoyle (202) 606-5902 Thursday, January 7, 1999
Internet address:
http://stats.bls.gov/ebshome.htm
Employee Benefits in Medium and Large Private Establishments, 1997
The proportion of full-time employees with medical care coverage
remained fairly constant from 1995 to 1997, but more employees in medium
and large private establishments were participating in non-traditional
health care plans, according to a survey conducted by the Bureau of Labor
Statistics, U.S. Department of Labor. Just over three-fourths of full-time
employees participated in employer-provided medical care plans in both 1995
and 1997, but shifts occurred in the types of plans. Non-traditional
health care plans, such as health maintenance organizations (HMOs) and
preferred provider organization (PPOs), covered 73 percent of the full-time
employees with employer-funded medical care benefits in 1997, compared with
63 percent in 1995. From 1991 to 1997, traditional fee-for-service plan
coverage of medical care participants has declined from 67 percent to 27
percent. In addition, a greater proportion of covered employees were
required to contribute toward individual and family coverage in 1997 than
in earlier periods.
These and other findings are available from the Employee Benefits
Survey of medium and large establishments in private industry. The 1997
survey covered 46 million employees--38.4 million full-time and 7.6 million
part-time employees--in private establishments with 100 and more workers.
The EBS reports on the availability of 33 employee benefits, with details
on the plan provisions of half of them.
Paid leave
Time off was the most frequently observed benefit for full-time
employees in medium and large private establishments in 1997. (See table
1.) With a few exceptions, nearly all full-time employees received paid
vacation benefits, and 9 out of 10 received paid holidays. Unpaid family
leave covered 93 percent of full-time employees in 1997, compared with 84
percent in 1995, reflecting the continued implementation of the Federal
Family and Medical Leave Act of 1993. This act obligates employers with
more than 50 employees to provide 12 weeks of unpaid leave each year to
employees for the birth or adoption of a child or for care associated with
employee or family member illness. Paid funeral and jury-duty leave also
are routinely provided to full-time employees.
The length of paid vacations and the number of paid holidays were
similar in 1997 and 1995. The number of available vacation days increases
with length of service. For example, employees received, on average, about
10 vacation days upon completion of one year of service and 22 days after
30 years in 1997. (See table 4.)
The average number of days of paid sick leave also increases with
service. In 1997, the average number of sick leave days available was 11
after one year of service and 21 after 25 years. The definition of paid
sick leave used in the survey changed beginning with the 1995 survey. In
years prior to 1995, the paid sick leave category included plans that
defined allowable days on a "per disability" basis, in addition to plans
that specified a number of days available each year. Beginning in 1995,
participants in "per disability" plans are not reported as having sick
leave plans but are included among "short-term disability" plan
participants, along with participants in sickness and accident insurance
plans.
Health benefits
Approximately 3 out of 4 full-time employees participated in employer-
sponsored medical care plans. Sixty-nine percent of those participating
were required to contribute towards the cost of single coverage in 1997,
compared with 67 percent in 1995. An even greater proportion were required
to contribute to the cost of family coverage. (See table 5.) In 1997,
employee contributions per month averaged $39.14 for single coverage and
$129.92 for family coverage. In 1995, these averages were $33.92 and
$118.33, respectively. (See table 7.)
The prevalence of non-traditional, or "managed care," plans continues
to increase. In 1997, 73 percent of all full-time employees with medical
care coverage were in non-traditional plans, compared with 63 percent in
1995. Thirty-three percent were in health maintenance organizations
(HMOs), up from 27 percent in 1995, 23 percent in 1993, and 17 percent in
1991. (See table 5.) Forty percent were in preferred provider
organizations (PPOs), compared with 34 percent in 1995, 26 percent in 1993,
and 16 percent in 1991. In contrast, only 27 percent of all medical care
plan participants were in traditional fee-for-service plans in 1997; 37
percent were in traditional fee-for-service plans in 1995, 50 percent in
1993, and 67 percent in 1991.
Employees in medium and large private establishments with medical care
benefits were much more likely to be eligible for preventive medical care
benefits in 1997 than they were in the early 1990s. (See table 6.) This
may be due in part to the increase in participation in non-traditional
medical plans, which often provide preventive medical care benefits. For
example, routine physical examinations were available to nearly two-thirds
of participants in 1997, compared with three-tenths in 1991. Similarly,
well-baby care benefits were offered to 66 percent of participants in 1997,
compared with 36 percent in 1991.
Participants in traditional fee-for-service plans and preferred
provider organizations (non-HMOs) have a greater choice of health care
providers but bear a greater proportion of their health care costs. Annual
deductibles, the amount the participant pays each year before the plan
reimburses any covered expenses, averaged $268 for individuals in 1997,
compared with $247 in 1995. (See table 8.) After the annual deductible is
satisfied, the plan pays a percentage of covered medical expenses, known as
coinsurance. Eighty-three percent of participants in traditional fee-for-
service plans were in plans that paid an 80 percent coinsurance in 1997.
(See table 9.) Although more generous than fee-for-service plans if a
network provider is used, most PPO plans also include a coinsurance
provision. For example, 36 percent of PPO plan participants were in plans
that paid 80 percent of covered expenses and 30 percent were in plans with
90 percent coinsurance.
Generally, the amount of yearly out-of-pocket expenses participants
had to pay in non-HMO plans was limited, with the cost of services above
this limit paid by the plan. In 1997, these maximum out-of-pocket limits
averaged $1,578 for individuals and $3,101 for families. (See table 8.)
Plans also typically restricted total lifetime benefits to a maximum
amount. Medical expenses above these lifetime maximums were not covered by
the plan. For participants in plans with lifetime maximums, the average
lifetime maximum was $1.1 million.
Data from another BLS survey showed that, in March 1997, employer
costs for the health benefits of all employees in medium and large private
establishments averaged $1.26 per hour worked, representing 6.1 percent of
total compensation costs. In March 1995, these costs averaged $1.34 per
hour worked and represented 6.9 percent of total compensation costs.
Employer costs are estimated in the BLS Employer Costs for Employee
Compensation program. (These data may be found at
http://stats.bls.gov/ecthome.htm on the Internet.)
Retirement benefits
Four-fifths of full-time employees participated in one or more
employer-sponsored retirement plans in 1997. Retirement plans are
typically classified as either a defined benefit or defined contribution
plan. In defined benefit plans, the benefit at retirement is specified
through a formula, and the employer bears the investment risk over the
years to fund the benefit. In defined contribution plans, the employer's
current cost (contribution) is specified, but the amount of retirement
benefit is unknown in advance. Half of all full-time employees in medium
and large private establishments were enrolled in defined benefit plans in
1997, compared with 52 percent in 1995; 57 percent were in enrolled in
defined contribution plans, compared with 55 percent in 1995. This
continues the trend away from defined benefit plans and towards defined
contribution plans. (See table 11.)
In 1997, 39 percent of full-time employees in medium and large private
establishments participated in savings and thrift plans, a common type of
defined contribution plan. (See table 1.) Other types of defined
contribution plans included deferred profit sharing plans, covering 13
percent of full-time employees, and money purchase plans, with enrollment
at 8 percent in 1997.
In savings and thrift plans, participants are required to make
contributions to the plan. These contributions are matched by employers,
subject to the maximum specified in the plans. The amount of contributions
employees are allowed to make is limited, often to 15 or 16 percent of
earnings. (See table 10.) Plans also limited the employee contribution
that would be matched by employer contributions. In plans with specified
employer matching rates, for example, 42 percent of participants had their
contributions up to 6 percent of earnings matched by employers. Another 48
percent were in plans with matches on 6 percent of earnings. The most
common rate of employer match (applicable to 47 percent of participants)
was 50 cents for each dollar contributed by the employee.
Fifty-five percent of full-time employees deferred a portion of their
current earnings (and sheltered the income from current income taxes) by
contributing to a retirement plan such as a 401(k) plan. In 1991, the
incidence of these plans was 44 percent.
The retirement benefit earned by participants in defined benefit plans
typically reflects their earnings, age, and length of service at
retirement. For two-thirds of the participants, the retirement benefit was
a percentage of preretirement earnings, most commonly a percentage of
earnings in the final years of their careers. (See table 12.) Most of the
remaining participants were in plans specifying a flat dollar amount of
benefits for each year of service. A large majority had to attain a
minimum age to receive a normal retirement benefit, typically in
combination with a minimum length of service requirement. For seven-tenths
of full-time participants in defined benefit plans, the minimum age for
normal retirement with unreduced benefits was 62 or 65. The minimum length
of service required for normal retirement varied by age at retirement. For
example, it was common to impose a service requirement of up to 30 years
before age 62, 5 or 10 years at age 62, and 5 years or no requirement
beginning at age 65. Voluntary early retirement, with a reduced benefit,
was available to almost all defined benefit plan participants.
According to the BLS Employer Costs for Employee Compensation program,
in March 1997, employer costs for retirement benefits for employees in
medium and large private establishments averaged 74 cents per hour worked,
representing 3.6 percent of total compensation costs. These costs were
divided rather evenly between defined benefit and defined contribution
plans-38 and 36 cents an hour, respectively.
Other findings
Life insurance was available to 87 percent of full-time employees in
medium and large private establishments in 1997. Nearly two-thirds (58
percent) of participants in life insurance plans had their insurance
protection defined as a multiple of annual earnings; for virtually all of
the remainder, insurance protection was a stated dollar amount (usually
between $5,000 and $25,000). The amount of insurance protection averaged
nearly $17,000 for employees in plans with a stated dollar amount benefit
and 1.5 times earnings for employees in multiple-of-earnings plans.
Two other benefits were prevalent among full-time employees in medium
and large private establishments-job-related educational assistance (67
percent of participants) and cafeteria benefit plans (52 percent). The
latter benefits, in accordance with Section 125 of the Internal Revenue
Code, were typically reimbursement account plans that allow employees to
set aside funds, often on a pre-tax basis, to pay for unpaid health care or
other expenses. In some cases, Section 125 plans are available to finance
benefit premiums.
The type of major benefits available to full-time employees varied by
occupational group. In retirement plans, for example, 46 percent of blue-
collar and service employees were in defined contribution plans as compared
with 70 percent of professional, technical, and related employees and 63
percent of clerical and sales employees. In contrast, about half of each
group participated in defined benefit plans. In health care, one-third of
blue-collar and service participants were in traditional plans, compared
with about one-fifth of employees in the two other groups.
Part-time employees were less likely to be covered by most benefit
programs. The most prevalent benefits for part-time workers were those
that could be prorated to time worked-for example, paid leave. Forty-four
percent of part-time employees received paid vacation benefits; 40 percent
received paid holidays. Part-time employees were less likely to
participate in benefits that had substantial per capita costs such as
health insurance or retirement benefits.
Table 1. Percent of full-time employees participating in selected employee benefit
programs,(1) medium and large private establishments, 1997
Professional,
All technical, Clerical Blue-collar
Employee benefit program employees and and sales and service
related employees(3) employees(4)
employees(2)
Paid time off
Holidays....................... 89 89 91 88
Vacations...................... 95 96 97 94
Personal leave................. 20 23 33 13
Funeral leave.................. 81 84 85 76
Jury duty leave................ 87 92 89 83
Military leave................. 47 60 50 38
Family leave................... 2 3 3 1
Unpaid time off
Family leave................... 93 95 96 91
Disability benefits
Paid sick leave(5)............. 56 73 73 38
Short-term disability
coverage(5)................. 55 54 52 58
Long-term disability insurance. 43 62 52 28
Insurance
Medical care................... 76 79 78 74
Dental care.................... 59 64 59 56
Vision care.................... 26 28 25 24
Life........................... 87 94 91 81
Retirement
All retirement(6).............. 79 89 81 72
Defined benefit plans......... 50 52 49 50
Defined contribution plans(7). 57 70 63 46
Savings and thrift........... 39 49 45 30
Deferred profit sharing...... 13 15 15 12
Employee stock ownership..... 4 6 6 3
Money purchase pension....... 8 12 6 6
Tax deferred
savings arrangements
With employer contributions.... 46 56 51 38
Without employer contributions. 9 11 8 8
1 Except for unpaid family leave and certain tax deferred earnings arrangements,
employers pay some or all of the costs for each benefit.
2 Includes professional, technical, executive, and administrative occupations.
3 Includes clerical, administrative support, and sales occupations.
4 Includes production, craft, repair, laborer, and service occupations.
5 The definitions of paid sick leave and short-term disability (previously, sickness
and accident insurance) were changed after 1994. Paid sick leave now includes only
plans with an unlimited or specified number of days per year. Short-term disability now
includes all insured, self-insured, and State-mandated plans that provide benefits for
each disability, including unfunded plans reported as sick leave in 1994.
6 Includes defined benefit and defined contribution plans. Some employees participate
in both types, but are counted just once in all retirement.
7 Total participation is less than the sum of individual plan types because some
employees participate in two or more types of plans.
NOTE: For paid time off, participants include all employees in occupations offered the
benefit.
Table 2. Percent of full-time employees offered other employee benefits, medium and
large private establishments, 1997
Professional,
All technical, Clerical Blue-collar
employees and and sales and service
related employees(2) employees(3)
employees(1)
Income continuation plans
Severance pay.............. 36 48 43 26
Supplemental unemployment
benefits................ 5 2 2 7
Family benefits
Child care................. 10 14 10 7
Adoption assistance........ 10 16 12 6
Long-term care insurance... 7 10 11 4
Flexible workplace......... 2 5 3 (4)
Health promotion programs
Wellness................... 36 44 36 32
Employee assistance........ 61 75 63 52
Fitness center............. 21 31 19 16
Miscellaneous benefits
Job-related travel accident
insurance............... 42 56 46 32
Nonproduction bonuses...... 42 43 43 40
Subsidized commuting....... 6 10 7 3
Educational assistance:
Job-related.............. 67 81 68 58
Non-job-related.......... 20 25 18 18
Section 125 cafeteria
benefits(5)............. 52 70 62 36
Flexible benefit plans... 13 20 15 7
Reimbursement plans...... 32 45 37 21
Premium conversion plans. 7 5 11 7
1 Includes professional, technical, executive, and administrative occupations.
2 Includes clerical, administrative support, and sales occupations.
3 Includes production, craft, repair, laborer, and service occupations.
4 Less than 0.5 percent.
5 Includes all types of plans under Internal Revenue Code, Section 125. Flexible
benefit plans may include reimbursement account features.
NOTE: Sums of individual items may not equal totals due to rounding.
Table 3. Percent of employees participating in selected employee benefit programs,(1) various
employment groups, 1995-97
Full-time employees in -
Part-time
Employee benefit program employees Medium and Small estab-
1997 large estab- lishments
lishments 1996
1995
Paid time off
Holidays......................... 40 89 80
Vacations........................ 44 96 86
Personal leave................... 9 22 14
Funeral leave.................... 34 80 51
Jury duty leave.................. 37 85 59
Military leave................... 9 44 18
Unpaid time off
Family leave..................... 54 84 48
Disability benefits
Paid sick leave(2)............... 18 58 50
Short-term disability(2)......... 18 53 29
Long-term disability............. 4 42 22
Insurance
Medical care..................... 21 77 64
Dental care...................... 16 57 31
Vision care...................... 9 24 12
Life............................. 18 87 62
Retirement
All retirement(3)................ 34 80 46
Defined benefit plans........... 17 52 15
Defined contribution plans(4)... 23 55 38
Savings and thrift............. 13 41 23
Deferred profit sharing........ 7 13 12
Tax deferred savings arrangements
With employer contributions...... 15 45 24
Without employer contributions... 4 9 4
Family benefits
Child care....................... 7 8 2
Adopton assistance............... 3 11 1
Long-term care insurance......... 3 6 1
Health promotion programs
Wellness......................... 17 34 8
Employee assistance.............. 36 58 14
Fitness center................... 11 19 4
Miscellaneous benefits
Severance pay.................... 10 35 15
Job-related travel accident
insurance..................... 18 41 12
Job-related educational
assistance.................... 34 65 38
Nonproduction bonsuses........... 17 39 44
Subsidized commuting............. 2 5 1
Section 125 cafeteria benefits(5) 15 55 23
Flexible benefit plans.......... 3 12 4
Reimbursement plans............. 11 38 12
Premium conversion plans........ 1 5 7
1 Except for unpaid family leave and certain tax deferred earnings arrangements, employers
pay some or all of the costs for each benefit.
2 The definitions of paid sick leave and short-term disability (previously, sickness and
accident insurance) were changed after 1994. Paid sick leave now includes only plans with an
unlimited or specified number of days per year. Short-term disability now includes all
insured, self-insured, and state-mandated plans that provide benefits for each disability,
including unfunded plans reported as sick leave in 1994.
3 Includes defined benefit and defined contribution plans. Some employees participate in
both types, but are counted just once in all retirement.
4 Includes participants in other types of plans not presented separately.
5 Includes all types of plans under Internal Revenue Code, Section 125. Flexible benefit
plans may include reimbursement account features.
NOTE: For paid time off, participants include all employees in occupations offered the
benefit. Because of rounding, sum of individual items may not equal totals.
Table 4. Average paid holidays and days of paid vacation and paid sick leave, full-time
employees in medium and large private establishments, 1997
Professional,
All technical, Clerical Blue-collar
Leave category employees and and sales and service
related employees(2) employees(3)
employees(1)
Paid holidays................... 9.3 9.6 8.8 9.4
Paid vacation days after
specified years of
service:(4)
1 year....................... 9.6 12.4 9.9 7.9
3 years...................... 11.5 13.3 11.4 10.5
5 years...................... 13.8 16.0 14.2 12.4
10 years..................... 16.9 18.9 17.0 15.6
15 years..................... 18.8 20.7 19.4 17.4
20 years..................... 20.3 21.9 20.5 19.2
25 years..................... 21.5 23.1 21.7 20.3
30 years..................... 21.7 23.4 22.0 20.6
Paid sick leave days after
specified years of
service:(4)
1 year....................... 11.2 13.3 10.1 9.9
3 years...................... 13.0 16.1 12.1 10.4
5 years...................... 15.2 19.3 14.5 11.5
10 years..................... 17.6 22.6 17.3 12.6
15 years..................... 18.8 24.7 18.1 13.2
20 years..................... 20.5 27.3 20.2 13.6
25 years..................... 21.1 28.0 20.8 14.1
1 Includes professional, technical, executive, and administrative occupations.
2 Includes clerical, administrative support, and sales occupations.
3 Includes production, craft, repair, laborer, and service occupations.
4 A specific number of days per year granted after completion of the indicated service
or accrued during the next 12-month period.
NOTE: Computed averages exclude days at partial pay and workers in plans that do not
stipulate at least 1 full day.
Table 5. Percent of full-time employees participating in employer-sponsored medical
benefits by type of medical plan and requirement for employee contributions, medium and
large private establishments, 1991, 1993, 1995, and 1997
Type of plan and contribution 1991 1993 1995 1997
requirement
Type of plan
Total........................... 100 100 100 100
Traditional fee-for-service
plans(1).................... 67 50 37 27
Preferred provider
organizations(2)............ 16 26 34 40
Health maintenance
organizations(3)............ 17 23 27 33
Other(4)....................... (5) 1 1 1
Requirement to contribute for
single coverage
Total........................... 100 100 100 100
Employee contribution not
required.................... 49 37 33 31
Employee contribution required. 51 61 67 69
Not determinable............... (5) 2 - -
Requirement to contribute for
family coverage
Total........................... 100 100 100 100
Employee contribution not
required.................... 31 21 22 20
Employee contribution required. 69 76 78 80
Not determinable............... (5) 3 - (5)
1 These plans pay for specific medical procedures as expenses are incurred.
2 Groups of hospitals and physicians that contract to provide comprehensive medical
services at prearranged prices. To encourage use of organization members, the health
plan limits reimbursement rates when participants use nonmember services.
3 Includes Federally qualified and other HMOs that deliver comprehensive health care
on a prepayment rather than fee-for-service basis.
4 Includes exclusive provider orgainizations, which are groups of hospitals and
physicians that contract to provide comprehensive medical services. Participants are
required to obtain services from members of the organization in order to receive plan
benefits.
5 Less than .5 percent.
NOTE: Because of rounding, sums of individual items may not equal totals. Dash
indicates no data were reported.
Table 6. Percent of full-time employees participating in employer-sponsored medical
benefits by availability of selected features, medium and large private
establishments, 1991, 1993, 1995, and 1997
Preventive care feature 1991 1993 1995 1997
Physical exams............ 30 42 56 63
Hearing care.............. 24 31 33 35
Well-baby care............ 36 48 60 66
Immunizations............. 30 37 47 52
Table 7. Average monthly employee contributions for single and family medical
coverage, by type of plan,(1) full-time employees in medium and large private
establishments, 1991, 1993, 1995, and 1997
Professional,
All technical, Clerical Blue-collar
Type of plan employees and and sales and service
related employees(3) employees(4)
employees(2)
1991
Individual coverage
All plans................. 26.60 26.35 28.00 25.82
Non-HMO plans............. 25.84 25.65 26.98 25.21
HMO plans................. 29.23 28.58 31.58 28.07
Family coverage
All plans................. 96.97 96.43 107.86 90.78
Non-HMO plans............. 91.52 92.66 103.99 83.67
HMO plans................. 118.19 110.08 121.40 121.97
1993
Individual coverage
All plans................. 31.55 31.87 33.84 29.90
Non-HMO plans............. 31.48 31.99 33.90 29.74
HMO plans................. 31.77 31.60 33.67 30.46
Family coverage
All plans................. 107.42 113.95 115.42 98.72
Non-HMO plans............. 102.48 112.58 112.08 91.70
HMO plans................. 121.84 116.94 124.98 124.14
1995
Individual coverage
All plans................. 33.92 34.84 35.59 32.22
Non-HMO plans............. 32.91 33.19 33.71 32.32
HMO plans................. 36.18 37.89 38.90 31.88
Family coverage
All plans................. 118.33 120.42 127.42 111.56
Non-HMO plans............. 112.18 116.21 119.84 105.96
HMO plans................. 132.66 128.28 141.12 129.85
1997
Individual coverage
All plans................. 39.14 37.19 39.38 40.43
Non-HMO plans............. 41.69 40.25 40.80 43.10
HMO plans................. 34.28 32.98 36.37 34.23
Family coverage
All plans................. 130.07 124.62 135.27 130.85
Non-HMO plans............. 132.37 127.76 134.01 134.22
HMO plans................. 125.79 120.16 137.87 123.61
1 Non-HMO plans include traditional fee-for-service plans, preferred provider
plans, and exclusive provider organization plans.
2 Includes professional, technical, executive, and administrative occupations.
3 Includes clerical, administrative support, and sales occupations.
4 Includes production, craft, repair, laborer, and service occupations.
NOTE: Average contributions are for plans stating a flat monthly cost.
Table 8. Average plan limits for non-health maintenance organization plans, full-time
employees in medium and large private establishments, 1995 and 1997
Professional,
All technical, Clerical Blue-collar
Average limit employees and and sales and service
related employees(2) employees(3)
employees(1)
1995
Annual individual deductible(4).. $247 $264 $273 $229
Annual out-of-pocket expense
maximum(5)
Individual...................... $1,358 $1,419 $1,354 $1,328
Family.......................... $2,858 $2,894 $2,948 $2,801
Lifetime maximum(6) ($ in
millions)..................... $1.0 $1.2 $1.0 $0.9
1997
Annual individual deductible(4).. $268 $310 $298 $237
Annual out-of-pocket expense
maximum(5)
Individual...................... $1,578 $1,565 $1,924 $1,432
Family.......................... $3,101 $3,375 $3,392 $2,820
Lifetime maximum(6) ($ in
millions)..................... $1.1 $1.2 $1.2 $1.0
1 Includes professional, technical, executive, and administrative occupations.
2 Includes clerical, administrative support, and sales occupations.
3 Includes production, craft, repair, laborer, and service occupations.
4 Amount of covered expenses that an individual must pay before any expenses are paid by
the plan. Further deductibles for specific medical services are excluded.
5 Amount of covered expenses that an individual or family must pay, exclusive of
deductibles, before the plan pays 100 percent of additional expenses. Expenses for
certain medical services, such as mental health care, may not be subject to this limit.
6 Total amount of covered expenses the plan will pay for each individual. When the
amount varied for employees and dependants, the employee amount was used.
NOTE: Average limits are calculated only for participants in plans that specify the
limit(s).
Table 9. Percent of full-time employees participating in non-health maintenance
organization plans by coinsurance rates, medium and large private establishments, 1997
Professional,
All technical, Clerical Blue-collar
Coinsurance rate(1) employees and and sales and service
related employees(3) employees(4)
employees(2)
All non-HMO plans(5).............. 100 100 100 100
With coinsurance................. 80 78 79 82
80 percent...................... 54 51 52 57
85 percent...................... 3 2 3 3
90 percent...................... 19 21 19 18
Other percent................... 4 4 5 3
Without coinsurance.............. 20 22 21 18
Traditional fee-for-service
plans(6)....................... 100 100 100 100
With coinsurance................. 93 94 93 93
80 percent...................... 83 82 83 84
85 percent...................... 2 1 1 2
90 percent...................... 2 2 1 2
Other percent................... 5 8 7 4
Without coinsurance.............. 7 6 7 7
Preferred provider organization
plans(7)....................... 100 100 100 100
With coinsurance................. 73 71 73 73
80 percent...................... 36 36 36 36
85 percent...................... 4 3 4 4
90 percent...................... 30 30 29 31
Other percent................... 3 2 4 2
Without coinsurance.............. 27 29 27 27
1 The percent of covered expenses paid by the plan after the deductible is satisfied and
before the annual out-of-pocket maximum is reached.
2 Includes professional, technical, executive, and administrative occupations.
3 Includes clerical, administrative support, and sales occupa-
tions.
4 Includes production, craft, repair, laborer, and service occupa-
tions.
5 Includes exclusive provider organization plans not presented separately.
6 These plans pay for specific medical procedures as expenses are incurred.
7 Groups of hospitals and physicians that contract to provide comprehensive medical
services at prearranged prices. To encourage use of organization members, the health plan
limits reimbursement rates when participants use nonmember services.
NOTE: Because of rounding, sums of individual items may not equal totals.
Table 10. Percent of full-time employees
participating in savings and thrift retirement
plans by selected plan features, medium and large
private establishments, 1997
Percent of
Selected feature participants
Employee contribution limit:
Total.............................. 100
Under 15 percent of earnings...... 28
15 percent........................ 33
16 percent........................ 17
Greater than 16 percent........... 11
Internal Revenue Code limit(1).... 10
Maximum employee contribution
matched by employer
Total.............................. 100
Under 6 percent of earnings....... 42
6 percent......................... 48
Greater than 6 percent............ 10
Employer matching rate:(2)
Total.............................. 100
1-49 percent...................... 23
50 percent........................ 47
100 percent....................... 15
Average(2)
Average employee contribution limit
(percent of earnings)........... 14.3
1 In 1997, the annual limit on employee
contributions to qualified plans was $9,500.
2 The average is presented for all covered
workers; averages exclude workers without the plan
provision.
NOTE: Because of rounding, sums of individual
items may not equal totals.
Table 11. Percent of full-time employees participating in retirement plans and tax
deferred retirement plans, medium and large private establishments, 1991,1993, 1995, and
1997
(in percent)
1991 1993 1995 1997
All retirement(1).............. 78 78 80 79
Defined benefit............... 59 56 52 50
Defined contribution.......... 48 49 55 57
Cash or deferred arrangements
401(k) plans................ 44 43 54 55
1 Includes defined benefit and defined contribution plans. Some employees participate
in both types, but are counted just once in all retirement.
Table 12. Percent of full-time employees
participating in defined benefit retirement plans
by selected plan features, medium and large private
establishments, 1997
Percent of
Selected feature participants
Benefit based on:
Percent of earnings............... 67
Dollar amount per year of service. 23
Selected age requirement for normal
unreduced benefit:
60................................ 9
62................................ 23
65................................ 48
Selected age and service
requirements for selected normal
retirement ages:
Age 62 - No service requirement... 3
Age 62 - 5 years service.......... 3
Age 62 - 10 years service......... 11
Age 65 - No service requirement... 29
Age 65 - 5 years service.......... 15
Early retirement available(1)....... 95
1 Retirement benefit is reduced for each year
prior to normal retirement age.
Technical note
The Employee Benefits Survey (EBS) estimates are one of the products
of the National Compensation Survey (NCS), an integrated program of
compensation surveys conducted by the Bureau of Labor Statistics. These
products also include estimates of occupational wage rates for major
metropolitan areas, indices of current compensation costs and estimates of
the rates of change in those costs (available for the nation and broad
geographic regions), and estimates of the average employer costs (in
dollars) for employee compensation and its major components (wages and
salaries and the various types of benefit categories).
The establishment sample from which the EBS data are collected is
periodically updated. An explanation of sampling and estimation procedures
will be provided in the forthcoming bulletin, Employee Benefits in Medium
and Large Private Establishments, 1997.
There are no measures of standard errors for the 1997 survey
estimates. Therefore, caution is advised when comparing the 1997 estimates
with those of previous years in which the survey of medium and large
establishments had been conducted.
In 1996, the Bureau of Labor Statistics changed the methods of
estimation to account for approximately 7 percent of employees within the
scope of the survey unaccounted for in previous years. These employees
were in occupations that ceased to exist within an establishment after that
establishment began participating in the survey. No replacement
occupations could be chosen. The estimation methods for the years prior to
1996 are not strictly comparable to those used in years after 1996.
Because the exact characteristics of the workers unaccounted for in the
years prior to 1996 are not known, caution is advised when comparing
estimates for smaller employee groups.
Availability of EBS data
More detailed data from the 1997 survey will appear in a bulletin,
Employee Benefits in Medium and Large Private Establishments, 1997. This
bulletin will be published in the summer of 1999. However, the survey
tabulations will be posted on the BLS Internet site about a month earlier,
and complete tabular results will be available upon written request. For
details on acquiring survey results from the Internet site or upon written
request, call 202-606-6222.
Benefits data for employees in small private establishments have been
published in bulletins for 1990, 1992, and 1994. The 1996 bulletin will be
available in early 1999.
Benefits data for employees in medium and large private establishments
have been published since 1979. Data comparable to those presented in this
release have been published in bulletins for 1991, 1993, and 1995.
Benefits data for employees in state and local governments have been
published in bulletins for 1987, 1990, 1992, and 1994. A survey of
benefits in state and local governments is being conducted for 1998.
Data from sequential years have been combined to produce estimates of
benefit incidence for the civilian economy (private industry and state and
local governments). These estimates have been produced for 1990-91, 1991-
92, 1992-93, 1993-94, and 1994-95. They have appeared in a variety of
published media. For example, see Ann C. Foster, "Employee Benefits in the
United States, 1994-95," Compensation and Working Conditions, Spring
1998, pp. 56-61.
Visit the Employee Benefits Survey home page
(http://stats.bls.gov/ebshome.htm)